THE IBROX side's finance director has said that no-one expected the club to turn a profit in their first year with figures show losses of one million pounds per month.

Brian Stockbridge: "Nobody expects the club to be making a big profit in the first year" (Photo: Grant Campbell/Rangers FC/PA)

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RANGERS finance director Brian Stockbridge has claimed that the club never expected to make a profit in the first year after posting losses of £7million for the last seven months of 2012.

Interim results to December 31 show revenue of £9.5million, with operating expenses of £16.6million.

Cash in the bank at the turn of the year sat at £21.2million after Rangers raised £22.2million from its listing on the London Stock Exchange in December.

The figures illustrate the finances since Charles Green's consortium purchased the business and assets of Rangers after the oldco was consigned to liquidation last summer.

"Nobody expects the club to be making a big profit in the first year," Stockbridge told Radio Clyde.

"We are not about trying to make profit at the expense of everything else.

"We do need to create shareholder value because we are now a public company but it's about approaching things in a sensible way.

"The existing investors haven't invested to make profits in the first six months, put it that way."

He added: "As long as we have proper, stable financial procedures in place, as long as we continue to push forward and enhance the other commercial revenue opportunities that the club hasn't enjoyed before and as long as we are efficient in what we spend - and we do need to spend on players at the right time as well - then the club can continue for the foreseeable future."

The figures also came as no surprise to finance expert Neil Patey of Ernst and Young.

And he believes Rangers - currently sitting top of the Irn-Bru Third Division - may have to secure their return to the Clydesdale Bank Premier League before making a profit.

"Most people were expecting some sort of loss but just weren't sure exactly how big the loss would be," said Patey.

"I don't think the fact it's making a loss is a big surprise. The quantum of it, again, is not totally unexpected.

"It's slightly depressed by the fact the seven month period includes June and July, where there is very low revenue, particularly for Rangers who weren't playing any pre-season friendlies or European football.

"Is it something to be concerned about?

"I think the most important thing from a fan's point of view is that there is cash of about £21million sitting in the bank, off the back of the IPO fund raised.

"For the time being, Rangers can continue to incur fairly significant losses because of the money raised from the IPO.

"What Charles Green will want to do is continue to try to improve his revenue line and, if they work their way back up the divisions, make work the continued support of all the fans buying season tickets and buying tickets for home games.

"I'm sure he will review ticket pricing as they go back up the leagues.

"Also, improving retail and sponsorship deals, some of which are already alluded to in the results with Puma and Sports Direct.

"But it also stresses the need for a continued tight control of costs because obviously you can't continue to run a loss of around £10million or £11million over the year indefinitely."

He added: "I don't have a crystal ball but I would think it's quite challenging to make a profit until they're back in the SPL.

"They might come close in the First Division.

"But I would have thought, from a prudent point of view, any sensible break-even or significant profit can only be achieved when they're back in Europe."